FINANCIAL ACCOUNTING AND REPORTING 1

ACT3114
TOPIC 7 – PRESENTATION OF FINANCIAL STATEMENTS

TUTORIAL 1

The following account balances were extracted from the ledger of WOW Bhd at the end of its
accounting period on 31 December 2019:

Account RM
Cash 60,400
Account receivable 29,100
Notes receivable 40,000
Supplies 10,300
Equipment 100,000
Accumulated depreciation – Equipment 6,000
Account payable 23,000
Unearned service revenue 12,600
Salaries and wages payable 14,200
Ordinary Share Capital (32,000 units of shares) 160,000
Retained earnings 24,000

During 2020, the following transactions occurred.

No Transactions
1 On 1 January 2020, WOW Bhd issued 10,000 ordinary shares for cash at RM5 per share
2 Issued 6% preference shares for RM33,000 cash on 5 January 2020.
3 Paid rent RM1,900.
4 WOW Bhd reacquired 5,000 ordinary shares on 1 June 2020, for RM8 per share
5 Received RM6,000 cash from customers for the payment due.
6 Paid RM14,200 for salaries and wages payable.
7 Received RM14,000 cash for services performed.
8 Purchased equipment on account RM10,000.
9 Paid creditors RM10,000 of account payable due.
10 Purchased supplies on account RM4,000.
11 On 1 September 2020, WOW Bhd declared annual preference share dividends and
RM0.30 per share dividend on the outstanding ordinary shares. The dividends will be
paid on 15 December 2020.
12 Billed customers RM18,800 for services performed.
13 Received RM3,900 cash for services to be performed in the future.
14 Paid RM23,000 for employees’ salaries and wages.
15 Paid dividends declared on 1 September 2020 to shareholders.
16 Issued 500,000 ordinary shares in exchange for land and building at the fair value of
RM400,000 and RM250,000 respectively.

Additional information:

1. A physical count shows supplies on hand of RM4,800.

1
 2. Accrued and unpaid employees’ salaries are RM7,700.
3. Depreciation on equipment for the month is RM1,600.
4. Services were performed to satisfy RM4,000 of unearned service revenue.

Required:
a) Prepare the Statement of Profit or Loss and Other Comprehensive Income for the year
ended at 31 December 2020.
b) Prepare the Statement of Financial Position as at 31 December 2020.
Note: Show all your working

TUTORIAL 2
The following is the trial balance of Jaya Sdn Bhd as at 31 December 2021.

Debit (RM) Credit (RM)

Equipment 133,000
Accumulated depreciation - Equipment 23,000
Inventory 44,700
Accounts receivable 27,700
Supplies 6,200
Cash 8,700
Accounts payable 49,500
Share capital 100,000
Retained earnings 38,000
Dividends 8,000
Sales 755,200
Sales returns and allowances 12,800
Cost of goods sold 497,400
Salaries expense 136,000
Advertising expense 24,400
Utilities expense 14,000
Maintenance expense 12,100
Freight-out expense 16,700
Rent expense 24,000
965,700 965,700

Additional information:
1. Supplies in hand amounted to 2,100.
2. Depreciation on equipment is calculated based on 10% straight line method.
3. The stock takes on 31 December 2021, shows an amount of RM44,520 of inventory in
hand.

Required:
c) Prepare the Statement of Profit or Loss and Other Comprehensive Income for the year
ended at 31 December 2021.
d) Prepare the Statement of Financial Position as at 31 December 2021.
Note: Show all your workings

2
 FINANCIAL ACCOUNTING AND REPORTING 1
ACT3114
TOPIC 7 – PRESENTATION OF FINANCIAL STATEMENTS
TUTORIAL 3

A. Cekap Sdn Bhd is providing consultation services to its customers. The following
information is gathered from the books of Cekap Sdn Bhd for the month of April 2023:

Information RM
Sales revenue (60% on credit) 180,000
Advertising expense (paid by cash) 10,800
Salaries expense (half of the amount not yet paid) 12,000
Rental expense on building (not yet paid) 8,000
Utilities expense (not yet paid) 6,000
Collection of cash from customers (for services rendered in March 2023) 9,500
Office equipment purchased on credit at 25 April 2023 15,000
Revaluation surplus on land at 28 April 2023 22,000
Received cash payment from a customer for services to be performed 10,600
next month
Maintenance expense on building (not yet paid) 7,500
Dividend income (cash will be received in May 2023) 9,400

Required:
Prepare a Statement of Profit or Loss and Other Comprehensive Income for Cekap Sdn
Bhd for the month ended 30 April 2023. Cekap Sdn Bhd uses the accrual basis accounting.

B. The following Statement of Financial Position for Cerdas Sdn Bhd as at 31 December 2022
was not prepared correctly.

Cerdas Sdn Bhd

Statement of Financial Position
As at 31 December 2022
Assets RM
Cash 55,000
Accounts payable 65,000
Share capital 160,000
Provision 15,000
Dividend receivable 20,000
Store supplies 25,000
Unearned revenue 35,000
Retained earnings 135,000
Total assets 510,000

Equity and Liabilities

Building 280,000
Financial assets – Available for sale 60,000
Accounts receivable 75,000
Accumulated depreciation - Building 40,000
Accumulated depreciation - Equipment 15,000
Bond payable 120,000
Fair value reserve 30,000
Equipment 100,000
Total equity and liabilities 720,000

3
 FINANCIAL ACCOUNTING AND REPORTING 1
ACT3114
TOPIC 7 – PRESENTATION OF FINANCIAL STATEMENTS

Required:
Prepare the corrected Statement of Financial Position for Cerdas Sdn Bhd as at 30
December 2022, according to the presentation requirements of MFRS 101.

TUTORIAL 4

4
 FINANCIAL ACCOUNTING AND REPORTING 1
ACT3114
TOPIC 7 – PRESENTATION OF FINANCIAL STATEMENTS

5
 FINANCIAL ACCOUNTING AND REPORTING 1
ACT3114
TOPIC 7 – PRESENTATION OF FINANCIAL STATEMENTS

TUTORIAL 5

6
 FINANCIAL ACCOUNTING AND REPORTING 1
ACT3114
TOPIC 7 – PRESENTATION OF FINANCIAL STATEMENTS

Additional information:

• Depreciation of 10% on cost applies to property, plant and equipment

(PPE) and is to be charged to administrative expenses.
• In the trial balance, Inventory as at 1 July 2018 should be 5,456 (not 8,456).
The balancing amount of RM120,382 is for inventory amount RM5,456

7
 FINANCIAL ACCOUNTING AND REPORTING 1
ACT3114
TOPIC 7 – PRESENTATION OF FINANCIAL STATEMENTS
TUTORIAL 6

8
 FINANCIAL ACCOUNTING AND REPORTING 1
ACT3114
TOPIC 7 – PRESENTATION OF FINANCIAL STATEMENTS
TUTORIAL 7